Govt draws plan to recapitalise 29 RRBs
Govt says efforts are being made to recapitalise 29 ailing Regional Rural Banks to turn their networth positive.
By PTI |
NEW DELHI: The government on Tuesday said efforts are being made to recapitalise 29 ailing Regional Rural Banks (RRBs) to turn their networth positive.
"Out of 96 RRBs, 29 are making losses therefore efforts to recapitalise these would ensure greater strength," Minister of State for Finance P K Bansal said at the India Rural Business Summit here.
After consolidation and amalgamation the number of RRBs have come down to 96 from 196, he said, adding these have become important tool for financial inclusion.
However, the exercise which requires Rs 1,850 crore is subject to state governments agreeing to put in 15 per cent share for reviving the banks.
If the states do not express willingness to put in their 15 per cent share, recapitalisation of these RRBs would take some time, Bansal said, adding there is no fixed time for recapitalisation.
The process would be carried out in a phased manner, he said.
The Centre has 50 per cent share in RRBs, with 35 per cent being owned by sponsored public sector banks and the remaining 15 per cent with the state governments.
Emphasising active participation of India Inc in the development of hinterland, Bansal said, "it is also in the interest of the industry as a whole to shift focus towards rural areas. It's not only that they would expect from the government only."
"There is need to have good roads and other infrastructure which will eventually improve their condition and eventually benefit industry," he said.
"Out of 96 RRBs, 29 are making losses therefore efforts to recapitalise these would ensure greater strength," Minister of State for Finance P K Bansal said at the India Rural Business Summit here.
After consolidation and amalgamation the number of RRBs have come down to 96 from 196, he said, adding these have become important tool for financial inclusion.
However, the exercise which requires Rs 1,850 crore is subject to state governments agreeing to put in 15 per cent share for reviving the banks.
If the states do not express willingness to put in their 15 per cent share, recapitalisation of these RRBs would take some time, Bansal said, adding there is no fixed time for recapitalisation.
The process would be carried out in a phased manner, he said.
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The Centre has 50 per cent share in RRBs, with 35 per cent being owned by sponsored public sector banks and the remaining 15 per cent with the state governments.
Emphasising active participation of India Inc in the development of hinterland, Bansal said, "it is also in the interest of the industry as a whole to shift focus towards rural areas. It's not only that they would expect from the government only."
"There is need to have good roads and other infrastructure which will eventually improve their condition and eventually benefit industry," he said.
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